Daily Currency Outlook: EUR/JPY And GBP/JPY : April 06,2018
EUR/JPY Daily Outlook
Daily Pivots: (S1) 131.16; (P) 131.32; (R1) 131.60;
EUR/JPY is still staying in consolidation in range of 128.94/132.40. Intraday bias remains neutral. With 132.40 resistance intact, near term outlook remains bearish and further decline is expected. On the downside, break of 128.94 will extend the whole fall from 137.49 to 126.61 medium term fibonacci level next. Nonetheless, break of 132.40 should confirm short term bottoming and turn bias back to the upside for stronger rebound.
In the bigger picture, current development argues that rise from 109.03 (2016 low) has completed at 137.49, on bearish pergence condition in weekly MACD. Deeper fall should be seen to 38.2% retracement of 109.03 to 137.49 at 126.61 first. Sustained break there would pave the way to 61.8% retracement at 119.90. On the upside, break of 132.40 resistance will indicate that the pull back is completed and bring retest of 137.49. But still, break of 137.49 is needed to confirm medium term rise resumption. Otherwise, outlook is neutral at best for consolidations.
GBP/JPY Daily Outlook
Daily Pivots: (S1) 149.99; (P) 150.34; (R1) 150.71;
Intraday bias in GBP/JPY stays neutral. We maintain that the choppy rise from 144.97 is a corrective move. Hence, strong resistance is expected from 150.92 (50% retracement of 156.59 to 144.97 at 150.78) to limit upside and bring fall resumption. On the downside, below 148.37 minor support will bring retest of 144.97 low first. However, sustained break of 150.92 will indicate near term reversal and pave the way back to retest 156.69 high.
In the bigger picture, the case for medium term reversal continues to build up. There is bearish pergence condition in daily MACD. 146.96 support was taken out. And GBP/JPY was rejected by 55 month EMA. Break of 38.2% retracement of 122.36 to 156.59 at 143.51 will pave the way to 61.8% retracement at 135.43 and below. This will now be the preferred case as long as 150.92 resistance holds.